Cattle Rallied Off Initial Pullback for Thursday Gains
Cattle started the Thursday session weaker, but most contracts rallied to end the day in the black. Feeders were mixed with a 5c loss in May and a 57c loss for August, to the 87c gain for March. The fat cattle ended the day within a dime of the high, closing up by as much as $1.60 across the front months. CME had 16 deliveries issued (and being retendered) vs the Feb contract, the oldest remaining long was dated 12/28. USDA confirmed cash trade on Thursday from $178 to $183, citing most sales $2.50 lower near $180. The CME Feeder Cattle Index for 2/12 was $244.93, down by $246.66.
Weekly beef export sales were shown at 16.6k MT for the week that ended 2/8. That was a new low for the year through the first 6-weeks, but was 1% above the same week last year. Beef exports were listed at 16.4k MT, which was 5% above the same week last year and brought the accumulated export to 85.9k MT (14% ahead of last year’s pace).
Thursday afternoon Boxed Beef quotes were shown as $295.30 for Choice and $287.99 for Select. That was up by $1.30 and by $3.97 respectively. The rib primals were shown as $457.25 and as $417.49 respectively. USDA estimated the week-to-date cattle slaughter at 486k head through Thursday. That is down 15k head from last week and 10k head from the same week last year.
Feb 24 Cattle closed at $183.400, up by $1.000,
April 24 Cattle closed at $185.600, up by $1.600,
Jun 24 Cattle closed at $181.870, up by $0.750,
Mar 24 Feeder Cattle closed at $247.100, up by $0.875
April 24 Feeder Cattle closed at $250.225, up by $0.625
On the date of publication, Alan Brugler did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
